France Telecom (Orange), one of Europe’s biggest, was one of the first to launch pay-TV services via satellite as well as IPTV. Xavier Couture, executive vice president, content, discussed the operator’s strategy and how it will blend satellite and telecom technologies to bring cutting-edge content propositions to Orange’s customer base.

IBC E-DAILY: What major initiatives is Orange working on in terms of the delivery of content?

Couture: Orange has been a strong promoter of transmedia storytelling, supporting various projects in 2009 and 2010. A transmedia project develops the program across multiple types of media — TV, Internet, mobile, video games, social networks, etc.— in order to have different entry points to the story, which creates an immersive experience for the consumers.

IBC E-DAILY: How do you benefit from offering services both via IP and satellite?

Couture: What we want to achieve is offer quality triple-play service (telephone, TV and Internet) to all our customers, wherever they live. Since not all households are eligible to TV over ADSL or fiber, we have decided to extend the triple-play coverage by launching a mixed ADSL/satellite solution in 2008 in France and Poland. The customers get TV over satellite and telephony, VoD and Internet services through ADSL. We were the first operator to launch such a hybrid service, and it is a real competitive advantage because triple-play is becoming a standard. We are now considering launching this solution in other countries of Orange footprint.

IBC E-DAILY: What do you see as the main growth drivers for your business?

Couture: Orange’s IPTV service is growing rapidly. We have reached more than 3 million subscribers (DTH and IPTV) at the end of June. What people expect from a TV offer is, first of all, a large selection of channels, pay-TV options and VOD — which we already provide. But they are increasingly asking for interactivity and multi-screen applications, and this is where we can make a difference. We have pioneered catch-up TV, interactive TV channels (Orange Sport), multiscreen TV (Orange Cinema Series), 3-D TV, etc. We will continue to build a new TV experience in partnership with leading TV channels and content players. Other main growth drivers for Orange are international expansion and the development of mobile application and content services.

IBC E-DAILY: What are Orange’s plans for launching 3-D TV services in France? When do you hope to launch a channel in France?

Couture: The Orange 3-D TV service is already up and running, on our ADSL, fiber and satellite TV platforms in France. We launched it back in May for the live 3-D TV broadcast of the Roland Garros French Tennis Open. Since then, we have also broadcast a popular TV reality show (La Nouvelle Star) as well as a selection of games from the football World Cup in partnership with the leading French TV channel,TF1. Other programs will be added progressively in the coming months.

IBC E-DAILY: How do you see the 3-D TV landscape developing in France?

Couture: It will take about two years for the market to really take-off, as there are still very few households equipped with 3-D TV screens, and prices are still high at this early stage. Furthermore, the 3-D TV offer is still limited, but I believe that the move towards 3-D will be stronger than HD because 3-D TV is a real revolution in terms of experience — a revolution equivalent to the move from black-and-white to color TV.
 

IBC E-DAILY: Do you believe that Orange has been ahead of the game in adapting to this new environment?

Couture: There is a real risk of disintermediation, meaning that content providers can deliver directly to the customers their favorite services and entertainment — turning the telcos into “dumb pipes” with no value added. To counter this threat, we are building strong partnerships allowing us to launch best-in-class content services and offer great user experience. We are mobilizing all our assets to build these partnerships, including our telecommunication networks, our extended R&D infrastructure, our distribution networks and our customer relationship and knowledge.

IBC E-DAILY: Where do you hope to position Orange on this landscape?

Couture: The market is changing, innovations such as connected devices, mobile applications or 3-D TV are on the rise and will surely change the way people consume content. What we want to do is position Orange as the best-loved partner in the broadcast industry as well as the best-loved content aggregator for our customers.